Messari’s CEO said that companies may choose to use bitcoin as an exit plan.
Rising tensions in the broader financial market have been tagged as a benchmark for a more ambitious fundamentals that could drive Bitcoin (BTC) price increase according to the predictions of Messari CEO Ryan Selkis. Selkis said this on his official Twitter account Said He believes that bitcoin could touch the $100,000 price target within the next 12 months.
As an expert who runs one of the most versatile crypto analytics platforms in the Web 3.0 world, Selkis gave his projections based on a series of fundamental analyzes on the causes of the crisis in today’s current banking ecosystem. With three core banks having collapsed so far this week, Selkis anticipates that more banking failures are on the way over the next few weeks.
When Silvergate Bank imploded, regulators and lawmakers wanted to attribute the decline to crypto exposure, however, the collapse of Silicon Valley Bank (SVB) significantly dampened the narrative. The trio of Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation (FDIC) joined forces To create an emergency funding program to help banks overcome their liquidity crunch.
Thus far, more than $160 billion has been borrowed from the government by banks, but according to Selkis’ estimates, this may not foreshadow impending doom in the near term. Given this, Selkis expects more quantitative easing (QE) from the Federal Open Market Committee (FOMC) in the near term, fueling speculation that the Fed may hold off on its scheduled interest rate hikes to heal markets. .
Amidst all this, Selkis believes that more institutions will look to bitcoin as “outside money” or “sound money” to protect their assets. Based on these sentiments, he believes that bitcoin could see a sharp accumulation in the year ahead, which would make it impossible for the Fed to shut it down again.
Messari CEO pitches bitcoin as a safe exit
As experienced during the harsh days of the COVID-19 pandemic, QE from the Fed could send so much fiat into circulation that it could further weaken the US dollar. In this instance, the CEO of Messari said that companies may choose to use bitcoin as an exit plan.
“This is an optimistic bet on the future, as BTC is perceived as a life raft and a peaceful exit option. But the key is threading the needle so that institutions can buy it and hedge it with us. Best scenario right now ,” he said in the tweet.
The $100,000 projection Ryan Selkis gave as his projection for bitcoin is only a mile away from trading at $26,533 at the time of this writing. The digital currency has received many such accolades from other industry leaders. Involved PlanB, inventor of the Stock-2-Flow (S2F) technical indicator, and Cathy Wood of Arc Invest.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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